Dubai is one among the fastest growing economical centers around the world. With the best and most flexible business laws out there. Still confused on how to set up a business in Dubai and step foot in Middle East. It is indeed quite a demanding field to be in when you are filled with entrepreneurs around you. Don’t worry we got it all figured out for you here.

First and foremost you have to have an idea of the business environment in UAE. Here, Dubai is home to the most influential MNCs around the world like, IBM, Amazon, Huawei. The country has always been generous to its foreign entrepreneurs by providing a well upgraded infrastructure. Also, UAE promises an advanced and luxurious lifestyle as there are no personal taxes.

Apart from this, Dubai is situated in a very strategic location serving as a bridge between Europe and Asia. Also, major ports and roads connected well to help in the smooth flow of goods and services. Hence, Dubai is an Ideal location for setup business and grow globally.

Factors to consider before starting a business in UAE

  • Audience or Market

    Researching on your business plan is a crucial part before starting a business in any part of the world. Dubai is open to any new start – up that you bring forward but it is necessary to understand your target audience and bring the plan of action.

  • Budget

    After finding your target audience go for planning a rough estimate on how much you have to spend to setup the business. It can either be invested solely by you or you can look in for investors, Initiatives like Scale2Dubai provide funding for scaling ventures.

  • Location

    After finalising your target audience and the estimated budget to start your business with, then you have to find a potential location for setting up the company. Selecting the correct jurisdiction comes with benefits. The city’s free zones, including DWTC, JAFZA, and DAFZ, amplify opportunities.

Business Setup – Mainland vs. free zones

The jurisdiction that you have selected for setup your business plays a very pivotal role in the benefits you acquire from it;

When it comes to starting your business in the Dubai Mainland area the Department of Economy & Tourism (DET) manages registration and licensing of mainland companies. Here you get 100% foreign ownership and it is highly flexible to access markets around UAE without any restrictions.

Coming to start off your business in the Free Zone area, same as above you get 100% ownership of your business setup. There will be 0% corporate taxation up to profits until AED 375,000 (9% corporate taxation for profits above AED 375,000), and 0% personal income tax. Under certain specific conditions, the Free Zone company can get Corporate Tax exemptions.

Acquiring a business license from the specific Free Zone allows you to open your workspace in that Free Zone. For operating outside the Free Zone, a special permit from DET can be availed for companies operating in Dubai-based Free Zones.

Initial Steps to Setup Your Business in Dubai

There are a few steps the investor must follow to set up a business in Dubai. These steps will help the entrepreneur to easily navigate through the journey of setting up a business in Dubai. So, the business owner can obtain the trade license for their company and successfully operate the newly set-up company without any hassle.

  • Pin – down the nature of your business

    It varies from fields like, Occupational, Tourism, Industrial, Commercial, Professional.

  • Choose Legal entity

    You can decide on the legal structure that would want to give your company,for example limited liability company (LLC), sole proprietorship, or branch office.

  • Select Company’s name

    while naming your company, adhere to the naming conventions set forward by UAE. It should be something that defines your whole business, keeping up with standards of UAE business laws.

  • Apply for initial Approval

    Depending on your business activity, you should apply for a Trade license (commercial, professional, or industrial license). Operating without a valid license can lead to heavy penalties. Submit the required documents for business setup in Dubai to the DET (incase of Mainland) and pay the registration fees to obtain your trade license. You should provide several standard documents like a completed application form, and passport copies of shareholders etc..The documents you’ll need to provide will depend on your business nature

  • Apply for final approval

    After all the documentation approvals and getting a legalized structure you have to submit for final approval. In certain cases, you’ll need to apply for licensing approval from other authorities. Submit the following for the final approval:

1) Initial approval receipt and all the previously submitted documents.
2) The lease contract provided by the Real Estate Regulatory Agency (RERA).
3) Duly attested service agent contract (for civil establishments and companies that are 100% owned by non-GCC nationals), the UAE involving a local service agent.

So, there are several benefits to setting up a business in Dubai. The investor can start operating in Dubai soon after they obtain their trade license. The trade license in Dubai can be obtained the same day in a few of the Free Trade Zones.

Furthermore, the business owner has two main options for setting up their business in Dubai. Depending on the type of business operations and area of operation, they can choose either the Mainland or the Free Zone.

Additionally, they offer several business setup packages tailored to specific business requirements.

For example, if they want a Free Zone company with an office space and 2 visas for the investors and 3 visas for employees to start with and later expand. The business owners have multiple Free Zones to choose from that will suit their requirements.

Depending on the emirate and location of the Free Zone, the office rent and associated trade license cost will vary.

Similarly, suppose they want to choose the Mainland and strengthen their local exposure further. In that case, the business owners can choose a Dubai Mainland License and business setup package pertaining to the mainland of Dubai.

Still having queries? Feel free to contact our team, here to assist you throughout the process of setting up a business for you.
Let us be a guiding hand to your new venture, make things simple by holding on with us.